Rio Tinto Aluminium (RTA) and Cahya Mata Sarawak (CMS) has released a statement confirming that they have agreed to terminated the pact on the proposed Sarawak smelter project in Samalaju.

The project was said to be shelved after the parties concerned failed to finalise commercial power supply terms with Sarawak Energy Berhad (SEB). CMS is represented by the Samalaju Aluminium Industries Sdn Bhd, its wholly-owned unit in the agreement.

CMS currently has a 20 per cent participation in the planned 600,000 metric tonnes manganese and ferro alloy smelter which is scheduled to commence production in 2013.

The smelter is being established in Samalaju Industrial Park (SIP) by a subsidiary of OM Holdings Ltd, an Australian-listed miner, manufacturer and trader of manganese, iron and chrome ores and alloys.